Cherry Hill Mortgage Investment Corp Q2 2025 Earnings Highlights: Strategic Partnerships and Market Resilience Amid Challenges

Cherry Hill Mortgage Investment Corp reported a GAAP net loss of $0.03 per diluted share for Q2 2025, with a book value per common share decreasing to $3.34. Despite this, the company maintained a solid liquidity profile, entered into a strategic partnership with Real Genius, and raised $9 million of capital through its common ATM program. The economy remained resilient, and inflation stayed low, providing a stable macroeconomic environment.

Cherry Hill Mortgage Investment Corp (NYSE: CHMI) reported a GAAP net loss of $0.03 per diluted share for the second quarter of 2025, with a book value per common share decreasing to $3.34. Despite this financial setback, the company maintained a solid liquidity profile, entered into a strategic partnership with Real Genius LLC, and raised $9 million of capital through its common ATM program.

The company's earnings call revealed that the net loss was primarily driven by realized gains and unrealized losses on derivatives, as well as increased operating expenses. The strategic partnership with Real Genius, a digital mortgage technology company, aims to enhance the company's digital mortgage capabilities and is expected to be profitable within the first year. This partnership is seen as a significant growth opportunity for the company.

Cherry Hill Mortgage also reported that it raised approximately $9 million of capital through its common ATM program during the quarter, which is a positive development for the company's financial position. The company ended the quarter with $58 million of unrestricted cash, providing a strong liquidity buffer.

The current macroeconomic environment was described as stable, with the economy remaining resilient and inflation staying low. This stable environment is expected to continue, providing a favorable backdrop for the company's investment strategy.

Analysts remain optimistic about the company's prospects, with the average analyst rating on the shares being "buy" and the breakdown of recommendations being 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell". The average consensus recommendation for the specialized REITs peer group is also "buy". Wall Street's median 12-month price target for Cherry Hill Mortgage is $4.00, about 27.7% above its August 6 closing price of $2.89.

Cherry Hill Mortgage's stock recently traded at 5 times the next 12-month earnings, compared to a P/E of 6 three months ago. This suggests that investors are anticipating a turnaround in the company's financial performance.

In conclusion, while Cherry Hill Mortgage reported a net loss for the second quarter of 2025, the company's strategic partnership with Real Genius and capital raising efforts highlight its commitment to growth and stability. The stable macroeconomic environment also provides a favorable backdrop for the company's investment strategy. Investors should continue to monitor the company's progress and the impact of the strategic partnership on its financial performance.

References:
[1] Reuters, "Cherry Hill Mortgage Investment Corp reports Q2 net loss of $0.9 mln," August 07, 2025, https://www.tradingview.com/news/reuters.com,2025:newsml_PLX5206F2:0-cherry-hill-mortgage-investment-corp-reports-q2-net-loss-of-0-9-mln/
[2] Yahoo Finance, "Cherry Hill Mortgage Investment Corp (CHMI): Q2 Earnings Results," August 07, 2025, https://sg.finance.yahoo.com/news/cherry-hill-mortgage-investment-corp-073845392.html
[3] Seeking Alpha, "Cherry Hill Mortgage: Q2 Non-GAAP EPS of $0.10 Misses by $0.01," May 2025, https://seekingalpha.com/news/4481855-cherry-hill-mortgage-non-gaap-eps-of-0_10-misses-by-0_01
[4] Seeking Alpha, "Cherry Hill Signals Risk on Investment Strategy Shift and Real Genius Partnership," August 07, 2025, https://seekingalpha.com/news/4482214-cherry-hill-signals-risk-on-investment-strategy-shift-and-real-genius-partnership-as